India Inc calls for investment-oriented budget !

India Inc calls for investment-oriented budget

India Inc calls for investment-oriented budget

In the forth coming Union Budget, which is scheduled on July 6, 2009, India Inc has asked for an investment-oriented Budget, besides demanding a cut in the direct tax rates for boosting the economy.

Representatives of industry chambers CII, FICCI, Assocham and several other industrialists also wanted printing of more currency notes to finance the fiscal deficit, instead of going for market borrowing which squeezes money available for private investment.

In the pre budget consultations with the Finance Minister Pranab Mukherjee, the industry leaders also sought fringe benefit tax removal and also demanded the raising of fund through disinvestment.

“We talked about reducing corporate tax rates a bit… we also talked about bringing down personal income tax rates, if possible. We suggested that income tax exemption limit be raised from Rs 1.5 lakh to Rs 2.5 lakh or Rs 3 lakhs,” FICCI President Harshpati Singhania said.

On the other hand, CII President Venu Srinivasan asked the government to print more currency notes to finance the fiscal deficit.

He also said current borrowings, pegged at Rs 3.6 lakh crore should be monetised, so that private investment is not crowded out, and interest rates do not keep increasing. What we need is significant investment in infrastructure. Money should be raised through disinvestment.

On FDI, Mittal said that it has been the corner stone of reforms and the government should invite more FDI in the country by making investor friendly environment.

He said infrastructure should be given a fillip in every form. Specific to the telecom sector, there should be rationalisation of duty structure, he added.

L&T CMD A M Naik said investment allowance should be reintroduced and income from foreign investment should be exempted from tax.

The industry bodies further said the Budget should also focus on education and skill development apart from moderating corporate tax and raising depreciation rates for plant and machinery from 15 per cent to 25 per cent.

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